India’s renewable energy capacity has grown significantly over the past decade. From around 35 GW in 2014, the country now has over 197 GW of installed capacity, excluding large hydro. This remarkable expansion places India among the fastest growing clean energy markets globally. The next phase of growth is focused not only on adding capacity but also on ensuring that it is absorbed efficiently through grid integration, storage deployment and market reforms.
The sector is at an inflection point, transitioning from rapid capacity expansion to deeper structural integration.
As of 30.09.2025, Renewable Energy Implementing Agencies (REIAs) have issued Letters of Award (LoAs) for 43,942 MW of capacity where PSAs with end procurers remain unsigned. This figure reflects the scale of recent bidding activity and the evolving nature of demand aggregation and procurement timelines. Since April 2023, these agencies have successfully signed PSAs for 24,928 MW of capacity, indicating continued progress in contract execution and market alignment.
The government with stakeholders is actively exploring mechanisms to optimise transmission capacity and improve the contracting framework. These efforts include examining the feasibility of signing PPAs and PSAs for certain awarded capacities and reviewing provisions such as the green shoe option. No blanket cancellations of the bids is being envisaged.
